Business / News
Saturday, 27 May 2017 14:25 EATnewsdesk@kenyafreepress.com
The Co-operative Bank of Kenya (Co-op Bank) expects a robust profit growth this year despite a tough operating environment, its chief executive officer Gideon Muriuki told shareholders in Nairobi yesterday.
Mr Muriuki told the Annual General Meeting (AGM) that the bank will profit from expansion in the energy, infrastructure and ICT fields where it has made substantial investments.
“We are confident the ‘Soaring Eagle’ transformation project’ will continue to provide us with the agility and resilience to achieve our strategic objectives even in the current tight operating environment,” the CEO said in his speech.
The bank's after tax profit for 2016 was Sh12.7 billion, up from Sh11.7 billion in 2015, allowing shareholders to approve a dividend of 80 cents per share for, which is similar to what was paid out in 2015.
The shareholders also approved an increase in the authorized share capital to Sh7.5 billion, up from the current Sh5 billion by creating additional 2.5 billion ordinary shares of Sh1 each. In the day before the AGM, Coop Bank shares had rallied to close at a 2017 high of Sh17.45.
During the AGM, the bank also announced that it had paid investors Sh923 million that its wealth management department had invested in a fixed deposit account at Chase Bank which is currently under receivership.
Co-op Trust Investment Services Limited, the investment arm, will recover the money once Chase Bank is re-opened. The receiver manager Kenya Deposit Insurance Corporation has put the bank up for sale, and the expression for interest attracted many local and foreign financial players.
While KDIC has not specified what size stake it will sell, Coop Bank announced that it is not among the Kenyan firms that expressed interest in taking over Chase Bank.
Jack is a business and society writer at the Kenya Free Press